Home » Finance » 15th Instalment of Rs.6,000 crore released to the States to meet the GST compensation shortfall.

15th Instalment of Rs.6,000 crore released to the States to meet the GST compensation shortfall.

The Ministry of Finance, Department of Expenditure has released the 15th weekly instalment of Rs.6,000 crore to the States today to meet the GST compensation shortfall. Out of this, an amount of Rs.5,516.60 crore has been released to 23 States and an amount of Rs.483.40 crore has been released to the 3 Union Territories (UT) with Legislative Assembly (Delhi, Jammu & Kashmir & Puducherry) who are members of the GST Council. The remaining 5 States, Arunachal Pradesh, Manipur, Mizoram, Nagaland and Sikkim do not have a gap in revenue on account of GST implementation.

Till now, 81 percent of the total estimated GST compensation shortfall has been released to the States & UTs with Legislative Assembly. Out of this, an amount of Rs.82,132.76 crore has been released to the States and an amount of Rs.7,867.24 crore has been released to the 3 UTs with Legislative Assembly.

The Government of India had set up a special borrowing window in October, 2020 to meet the estimated shortfall of Rs.1.10 Lakh crore in revenue arising on account of implementation of GST. The borrowings are being done through this window by the Government of India on behalf of the States and UTs. 15 rounds of borrowings have been completed so far starting from 23rd October, 2020.

The amount released this week was the 15th instalment of such funds provided to the States. The amount has been borrowed this week at an interest rate of 5.5288%. So far, an amount of Rs.90,000 crore has been borrowed by the Central Government through the special borrowing window at an average interest rate of 4.7921%.

In addition to providing funds through the special borrowing window to meet the shortfall in revenue on account of GST implementation, the Government of India has also granted additional borrowing permission equivalent to 0.50 % of Gross States Domestic Product (GSDP) to the states choosing Option-I to meet GST compensation shortfall to help them in mobilising additional financial resources. All the States have given their preference for Option-I. Permission for borrowing the entire additional amount of Rs.1,06,830 crore (0.50 % of GSDP) has been granted to 28 States under this provision.

The amount of additional borrowing permission granted to 28 States and the amount of funds raised through special window and released to the States and Union Territories so far is annexed.                                                                                           State wise additional borrowing of 0.50 percent of GSDP allowed and amount of funds raised through special window passed on to the States/UTs till 12.02.2021

(Rs. in Crore)

S. No. Name of State / UT Additional borrowing of 0.50 percent allowed to States Amount of fund raised through special window passed on to the States/ UTs
1 Andhra Pradesh 5051 2062.35
2 Arunachal Pradesh* 143 0.00
3 Assam 1869 887.32
4 Bihar 3231 3484.54
5 Chhattisgarh 1792 1692.60
6 Goa 446 749.50
7 Gujarat 8704 8229.50
8 Haryana 4293 3883.70
9 Himachal Pradesh 877 1532.27
10 Jharkhand 1765 919.50
11 Karnataka 9018 11071.99
12 Kerala 4,522 3467.40
13 Madhya Pradesh 4746 4053.31
14 Maharashtra 15394 10688.59
15 Manipur* 151 0.00
16 Meghalaya 194 99.89
17 Mizoram* 132 0.00
18 Nagaland* 157 0.00
19 Odisha 2858 3410.77
20 Punjab 3033 5026.60
21 Rajasthan 5462 3413.62
22 Sikkim* 156 0.00
23 Tamil Nadu 9627 5569.70
24 Telangana 5017 1595.58
25 Tripura 297 201.90
26 Uttar Pradesh 9703 5360.61
27 Uttarakhand 1405 2067.00
28 West Bengal 6787 2664.52
  Total (A): 106830 82132.76
1 Delhi Not applicable 5233.87
2 Jammu & Kashmir Not applicable 2027.43
3 Puducherry Not applicable 605.94
  Total (B): Not applicable 7867.24
  Grand Total (A+B) 106830 90000.00

* These States have ‘NIL’ GST compensation gap

 

About IIPnews

Leave a Reply

Your email address will not be published. Required fields are marked *

*

x

Check Also

National Research Foundation Outlay to be Rs 50,000 crore, over 5 years

To strengthen the overall research ecosystem of the country, the Union Budget FY 2021-22 announced a ...

Summary of the Budget 2021-22

  PART-A The Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman presented the ...

Decriminalisation of the Limited Liability Partnership (LLP) Act, 2008 proposed

Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman proposed reforms for small companies ...

Union Finance Minister says Every Possible Measure shall be taken to smoothen the GST

With an aim to rationalize custom duty structure, ease compliance and give impetus to domestic ...

India is expected to witness current account surplus after a gap of 17 Years

Covid-19 pandemic has triggered the worst global recession in 2020 since the Great Depression; the ...

India must continue to focus on Economic Growth to Alleviate Poverty: Economic Survey 2020-21 “Given ...

Grant of Rs.12,351 crore released for Rural Local Bodies

The Department of Expenditure, Ministry of Finance has released an amount of Rs.12,351.5 crore to ...

13th Instalment of Rs.6,000 crore released to the States to meet the GST compensation shortfall

The Ministry of Finance, Department of Expenditure has released the 13th weekly instalment of Rs. 6,000 ...

Projects of Rs.10,657 crore in 27 States have been approved so far under the “Scheme for financial assistance to States for capital projects”

Madhya Pradesh has become the first State to get additional funds for capital projects for ...

CBIC introduces flagship Liberalised Authorised Economic Operator Package for MSMEs

Recognising their critical contribution in supporting the economy especially during the present difficult times of ...

WP2Social Auto Publish Powered By : XYZScripts.com